| ver the past decades, many firms have been successfully implementing strategic mergers and acquisitions to achieve inorganic growth or to boost the corporate overall performance. This dissertation examined the factors of success in mergers and acquisitions. Indeed, this quantitative research has focused on both the target firms (pre-merger factors) and the acquiring firms (post-merger factors). The factors were analyzed statistically using the comprehensive dataset of 864 U.S publicly traded transactions, deal value ranges from ;Findings of this research pointed out several important key factors to determine the success of M&A transactions. This study confirmed that M& A doesn't create any significant improvements for the acquiring firms and their shareholders. In term of the target's relative size, this study found that the successful acquirers often acquire the target's relative size below 25%. For the method of payment, this study found that the combined method (cash & stock) was the most effective method. In term of the M& A types, this study found that the diversification merger generated the highest return on equity (ROE). However, the results from these factors were statistically insignificant. For the transaction values (deal value) and the acquisition timing (deal date), this study confirmed a statistically significant result in determining the success in M& A. Finally, this study also identified the patterns of purchase by the acquirers include: operating margin, target's revenue, horizontal merger, cash method, and deal value is below... |
